-CITE-

49 USC CHAPTER 109 - LICENSING 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

CHAPTER 109 - LICENSING

-MISC1-

Sec.

10901. Authorizing construction and operation of railroad

lines.

10902. Short line purchases by Class II and Class III rail

carriers.

10903. Filing and procedure for application to abandon or

discontinue.

10904. Offers of financial assistance to avoid abandonment

and discontinuance.

10905. Offering abandoned rail properties for sale for public

purposes.

10906. Exception.

10907. Railroad development.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 45 section 748.

-End-

-CITE-

49 USC Sec. 10901 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10901. Authorizing construction and operation of railroad

lines

-STATUTE-

(a) A person may -

(1) construct an extension to any of its railroad lines;

(2) construct an additional railroad line;

(3) provide transportation over, or by means of, an extended or

additional railroad line; or

(4) in the case of a person other than a rail carrier, acquire

a railroad line or acquire or operate an extended or additional

railroad line,

only if the Board issues a certificate authorizing such activity

under subsection (c).

(b) A proceeding to grant authority under subsection (a) of this

section begins when an application is filed. On receiving the

application, the Board shall give reasonable public notice,

including notice to the Governor of any affected State, of the

beginning of such proceeding.

(c) The Board shall issue a certificate authorizing activities

for which such authority is requested in an application filed under

subsection (b) unless the Board finds that such activities are

inconsistent with the public convenience and necessity. Such

certificate may approve the application as filed, or with

modifications, and may require compliance with conditions (other

than labor protection conditions) the Board finds necessary in the

public interest.

(d)(1) When a certificate has been issued by the Board under this

section authorizing the construction or extension of a railroad

line, no other rail carrier may block any construction or extension

authorized by such certificate by refusing to permit the carrier to

cross its property if -

(A) the construction does not unreasonably interfere with the

operation of the crossed line;

(B) the operation does not materially interfere with the

operation of the crossed line; and

(C) the owner of the crossing line compensates the owner of the

crossed line.

(2) If the parties are unable to agree on the terms of operation

or the amount of payment for purposes of paragraph (1) of this

subsection, either party may submit the matters in dispute to the

Board for determination. The Board shall make a determination under

this paragraph within 120 days after the dispute is submitted for

determination.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 822.)

-MISC1-

PRIOR PROVISIONS

A prior section 10901, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1402; Pub. L. 96-448, title II, Sec. 221, Oct. 14, 1980, 94 Stat.

1928, related to authorizing construction and operation of railroad

lines, prior to the general amendment of this subtitle by Pub. L.

104-88, Sec. 102(a).

EFFECTIVE DATE

Chapter effective Jan. 1, 1996, except as otherwise provided in

Pub. L. 104-88, see section 2 of Pub. L. 104-88, set out as a note

under section 701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10906, 11702, 11901 of

this title; title 45 section 904.

-End-

-CITE-

49 USC Sec. 10902 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10902. Short line purchases by Class II and Class III rail

carriers

-STATUTE-

(a) A Class II or Class III rail carrier providing transportation

subject to the jurisdiction of the Board under this part may

acquire or operate an extended or additional rail line under this

section only if the Board issues a certificate authorizing such

activity under subsection (c).

(b) A proceeding to grant authority under subsection (a) of this

section begins when an application is filed. On receiving the

application, the Board shall give reasonable public notice of the

beginning of such proceeding.

(c) The Board shall issue a certificate authorizing activities

for which such authority is requested in an application filed under

subsection (b) unless the Board finds that such activities are

inconsistent with the public convenience and necessity. Such

certificate may approve the application as filed, or with

modifications, and may require compliance with conditions (other

than labor protection conditions) the Board finds necessary in the

public interest.

(d) The Board shall require any Class II rail carrier which

receives a certificate under subsection (c) of this section to

provide a fair and equitable arrangement for the protection of the

interests of employees who may be affected thereby. The arrangement

shall consist exclusively of one year of severance pay, which shall

not exceed the amount of earnings from railroad employment of the

employee during the 12-month period immediately preceding the date

on which the application for such certificate is filed with the

Board. The amount of such severance pay shall be reduced by the

amount of earnings from railroad employment of the employee with

the acquiring carrier during the 12-month period immediately

following the effective date of the transaction to which the

certificate applies. The parties may agree to terms other than as

provided in this subsection. The Board shall not require such an

arrangement from a Class III rail carrier which receives a

certificate under subsection (c) of this section.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 823.)

-MISC1-

PRIOR PROVISIONS

A prior section 10902, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1403, related to authorizing action by rail carriers to provide

adequate, efficient, and safe facilities.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 11702, 11901 of this

title; title 45 section 797l.

-End-

-CITE-

49 USC Sec. 10903 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10903. Filing and procedure for application to abandon or

discontinue

-STATUTE-

(a)(1) A rail carrier providing transportation subject to the

jurisdiction of the Board under this part who intends to -

(A) abandon any part of its railroad lines; or

(B) discontinue the operation of all rail transportation over

any part of its railroad lines,

must file an application relating thereto with the Board. An

abandonment or discontinuance may be carried out only as authorized

under this chapter.

(2) When a rail carrier providing transportation subject to the

jurisdiction of the Board under this part files an application, the

application shall include -

(A) an accurate and understandable summary of the rail

carrier's reasons for the proposed abandonment or discontinuance;

(B) a statement indicating that each interested person is

entitled to make recommendations to the Board on the future of

the rail line; and

(C)(i) a statement that the line is available for subsidy or

sale in accordance with section 10904 of this title, (ii) a

statement that the rail carrier will promptly provide to each

interested party an estimate of the annual subsidy and minimum

purchase price, calculated in accordance with section 10904 of

this title, and (iii) the name and business address of the person

who is authorized to discuss the subsidy or sale terms for the

rail carrier.

(3) The rail carrier shall -

(A) send by certified mail notice of the application to the

chief executive officer of each State that would be directly

affected by the proposed abandonment or discontinuance;

(B) post a copy of the notice in each terminal and station on

each portion of a railroad line proposed to be abandoned or over

which all transportation is to be discontinued;

(C) publish a copy of the notice for 3 consecutive weeks in a

newspaper of general circulation in each county in which each

such portion is located;

(D) mail a copy of the notice, to the extent practicable, to

all shippers that have made significant use (as designated by the

Board) of the railroad line during the 12 months preceding the

filing of the application; and

(E) attach to the application filed with the Board an affidavit

certifying the manner in which subparagraphs (A) through (D) of

this paragraph have been satisfied, and certifying that

subparagraphs (A) through (D) have been satisfied within the most

recent 30 days prior to the date the application is filed.

(b)(1) Except as provided in subsection (d), abandonment and

discontinuance may occur as provided in section 10904.

(2) The Board shall require as a condition of any abandonment or

discontinuance under this section provisions to protect the

interests of employees. The provisions shall be at least as

beneficial to those interests as the provisions established under

sections 11326(a) and 24706(c) (!1) of this title.

(c)(1) In this subsection, the term "potentially subject to

abandonment" has the meaning given the term in regulations of the

Board. The regulations may include standards that vary by region of

the United States and by railroad or group of railroads.

(2) Each rail carrier shall maintain a complete diagram of the

transportation system operated, directly or indirectly, by the rail

carrier. The rail carrier shall submit to the Board and publish

amendments to its diagram that are necessary to maintain the

accuracy of the diagram. The diagram shall -

(A) include a detailed description of each of its railroad

lines potentially subject to abandonment; and

(B) identify each railroad line for which the rail carrier

plans to file an application to abandon or discontinue under

subsection (a) of this section.

(d) A rail carrier providing transportation subject to the

jurisdiction of the Board under this part may -

(1) abandon any part of its railroad lines; or

(2) discontinue the operation of all rail transportation over

any part of its railroad lines;

only if the Board finds that the present or future public

convenience and necessity require or permit the abandonment or

discontinuance. In making the finding, the Board shall consider

whether the abandonment or discontinuance will have a serious,

adverse impact on rural and community development.

(e) Subject to this section and sections 10904 and 10905 of this

title, if the Board -

(1) finds public convenience and necessity, it shall -

(A) approve the application as filed; or

(B) approve the application with modifications and require

compliance with conditions that the Board finds are required by

public convenience and necessity; or

(2) fails to find public convenience and necessity, it shall

deny the application.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 823.)

-REFTEXT-

REFERENCES IN TEXT

Section 24706(c) of this title, referred to in subsec. (b)(2),

was repealed by Pub. L. 105-134, title I, Sec. 142(a), Dec. 2,

1997, 111 Stat. 2576.

-MISC1-

PRIOR PROVISIONS

A prior section 10903, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1403; Pub. L. 96-448, title IV, Sec. 402(a), Oct. 14, 1980, 94

Stat. 1941; Pub. L. 98-216, Sec. 2(14), Feb. 14, 1984, 98 Stat. 5;

Pub. L. 103-272, Sec. 5(m)(24), July 5, 1994, 108 Stat. 1378,

related to authorizing abandonment and discontinuance of railroad

lines and rail transportation.

RAILROAD BRANCHLINE ABANDONMENTS BY BURLINGTON NORTHERN RAILROAD IN

NORTH DAKOTA

Pub. L. 97-102, title IV, Sec. 402, Dec. 23, 1981, 95 Stat. 1465,

as amended by Pub. L. 102-143, title III, Sec. 343, Oct. 28, 1991,

105 Stat. 948, provided that: "Notwithstanding any other provision

of law or of this Act, none of the funds provided in this or any

other Act shall hereafter be used by the Interstate Commerce

Commission to approve railroad branchline abandonments in the State

of North Dakota by the entity generally known as the Burlington

Northern Railroad, or its agents or assignees, in excess of a total

of 350 miles, except that exempt abandonments and discontinuances

that are effectuated pursuant to section 1152.50 of title 49 of the

Code of Federal Regulations after the date of enactment of the

Department of Transportation and Related Agencies Appropriations

Act, 1992 [Oct. 28, 1991], shall not apply toward such 350-mile

limit: Provided, That this section shall be in lieu of section 311

(amendment numbered 93) as set forth in the conference report and

the joint explanatory statement of the committee of conference on

the Department of Transportation and Related Agencies

Appropriations Act, 1982 (H.R. 4209), filed in the House of

Representatives on November 13, 1981 (H. Rept. No. 97-331)."

[Section 311 of H.R. 4209 is section 311 of Pub. L. 97-102, title

III, Dec. 23, 1981, 95 Stat. 1460, which is not classified to the

Code.] Similar provisions were contained in Pub. L. 97-92, title

IV, Sec. 115, Dec. 15, 1981, 95 Stat. 1196.

[Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of this title, and section 101 of Pub. L. 104-88, set

out as a note under section 701 of this title. References to

Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of this title.]

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10904, 10905, 10907,

11702, 11901 of this title; title 45 section 748.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

49 USC Sec. 10904 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10904. Offers of financial assistance to avoid abandonment and

discontinuance

-STATUTE-

(a) In this section -

(1) the term "avoidable cost" means all expenses that would be

incurred by a rail carrier in providing transportation that would

not be incurred if the railroad line over which the

transportation was provided were abandoned or if the

transportation were discontinued. Expenses include cash inflows

foregone and cash outflows incurred by the rail carrier as a

result of not abandoning or discontinuing the transportation.

Cash inflows foregone and cash outflows incurred include -

(A) working capital and required capital expenditure;

(B) expenditures to eliminate deferred maintenance;

(C) the current cost of freight cars, locomotives, and other

equipment; and

(D) the foregone tax benefits from not retiring properties

from rail service and other effects of applicable Federal and

State income taxes; and

(2) the term "reasonable return" means -

(A) if a rail carrier is not in reorganization, the cost of

capital to the rail carrier, as determined by the Board; and

(B) if a rail carrier is in reorganization, the mean cost of

capital of rail carriers not in reorganization, as determined

by the Board.

(b) Any rail carrier which has filed an application for

abandonment or discontinuance shall provide promptly to a party

considering an offer of financial assistance and shall provide

concurrently to the Board -

(1) an estimate of the annual subsidy and minimum purchase

price required to keep the line or a portion of the line in

operation;

(2) its most recent reports on the physical condition of that

part of the railroad line involved in the proposed abandonment or

discontinuance;

(3) traffic, revenue, and other data necessary to determine the

amount of annual financial assistance which would be required to

continue rail transportation over that part of the railroad line;

and

(4) any other information that the Board considers necessary to

allow a potential offeror to calculate an adequate subsidy or

purchase offer.

(c) Within 4 months after an application is filed under section

10903, any person may offer to subsidize or purchase the railroad

line that is the subject of such application. Such offer shall be

filed concurrently with the Board. If the offer to subsidize or

purchase is less than the carrier's estimate stated pursuant to

subsection (b)(1), the offer shall explain the basis of the

disparity, and the manner in which the offer is calculated.

(d)(1) Unless the Board, within 15 days after the expiration of

the 4-month period described in subsection (c), finds that one or

more financially responsible persons (including a governmental

authority) have offered financial assistance regarding that part of

the railroad line to be abandoned or over which all rail

transportation is to be discontinued, abandonment or discontinuance

may be carried out in accordance with section 10903.

(2) If the Board finds that such an offer or offers of financial

assistance has been made within such period, abandonment or

discontinuance shall be postponed until -

(A) the carrier and a financially responsible person have

reached agreement on a transaction for subsidy or sale of the

line; or

(B) the conditions and amount of compensation are established

under subsection (f).

(e) Except as provided in subsection (f)(3), if the rail carrier

and a financially responsible person (including a governmental

authority) fail to agree on the amount or terms of the subsidy or

purchase, either party may, within 30 days after the offer is made,

request that the Board establish the conditions and amount of

compensation.

(f)(1) Whenever the Board is requested to establish the

conditions and amount of compensation under this section -

(A) the Board shall render its decision within 30 days;

(B) for proposed sales, the Board shall determine the price and

other terms of sale, except that in no case shall the Board set a

price which is below the fair market value of the line

(including, unless otherwise mutually agreed, all facilities on

the line or portion necessary to provide effective transportation

services); and

(C) for proposed subsidies, the Board shall establish the

compensation as the difference between the revenues attributable

to that part of the railroad line and the avoidable cost of

providing rail freight transportation on the line, plus a

reasonable return on the value of the line.

(2) The decision of the Board shall be binding on both parties,

except that the person who has offered to subsidize or purchase the

line may withdraw his offer within 10 days of the Board's decision.

In such a case, the abandonment or discontinuance may be carried

out immediately, unless other offers are being considered pursuant

to paragraph (3) of this subsection.

(3) If a rail carrier receives more than one offer to subsidize

or purchase, it shall select the offeror with whom it wishes to

transact business, and complete the subsidy or sale agreement, or

request that the Board establish the conditions and amount of

compensation before the 40th day after the expiration of the

4-month period described in subsection (c). If no agreement on

subsidy or sale is reached within such 40-day period and the Board

has not been requested to establish the conditions and amount of

compensation, any other offeror whose offer was made within the

4-month period described in subsection (c) may request that the

Board establish the conditions and amount of compensation. If the

Board has established the conditions and amount of compensation,

and the original offer has been withdrawn, any other offeror whose

offer was made within the 4-month period described in subsection

(c) may accept the Board's decision within 20 days after such

decision, and the Board shall require the carrier to enter into a

subsidy or sale agreement with such offeror, if such subsidy or

sale agreement incorporates the Board's decision.

(4)(A) No purchaser of a line or portion of line sold under this

section may transfer or discontinue service on such line prior to

the end of the second year after consummation of the sale, nor may

such purchaser transfer such line, except to the rail carrier from

whom it was purchased, prior to the end of the fifth year after

consummation of the sale.

(B) No subsidy arrangement approved under this section shall

remain in effect for more than one year, unless otherwise mutually

agreed by the parties.

(g) Upon abandonment of a railroad line under this chapter, the

obligation of the rail carrier abandoning the line to provide

transportation on that line, as required by section 11101(a), is

extinguished.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 825.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10905 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10904, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1404; Pub. L. 96-448, title IV, Sec. 402(b), Oct. 14, 1980, 94

Stat. 1941; Pub. L. 98-216, Sec. 2(4), Feb. 14, 1984, 98 Stat. 5,

related to filing and procedure for applications to abandon or

discontinue railroad lines or rail transportation, prior to the

general amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

See section 10903 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10903, 11702, 11901 of

this title; title 45 section 748.

-End-

-CITE-

49 USC Sec. 10905 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10905. Offering abandoned rail properties for sale for public

purposes

-STATUTE-

When the Board approves an application to abandon or discontinue

under section 10903, the Board shall find whether the rail

properties that are involved in the proposed abandonment or

discontinuance are appropriate for use for public purposes,

including highways, other forms of mass transportation,

conservation, energy production or transmission, or recreation. If

the Board finds that the rail properties proposed to be abandoned

are appropriate for public purposes and not required for continued

rail operations, the properties may be sold, leased, exchanged, or

otherwise disposed of only under conditions provided in the order

of the Board. The conditions may include a prohibition on any such

disposal for a period of not more than 180 days after the effective

date of the order, unless the properties have first been offered,

on reasonable terms, for sale for public purposes.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 827.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10906 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10905, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1405; Pub. L. 96-448, title IV, Sec. 402(c), Oct. 14, 1980, 94

Stat. 1942; Pub. L. 103-272, Sec. 4(j)(26), July 5, 1994, 108 Stat.

1369, related to offers of financial assistance to avoid

abandonment and discontinuance, prior to the general amendment of

this subtitle by Pub. L. 104-88, Sec. 102(a). See section 10904 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10903, 11702, 11901 of

this title.

-End-

-CITE-

49 USC Sec. 10906 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10906. Exception

-STATUTE-

Notwithstanding section 10901 and subchapter II of chapter 113 of

this title, and without the approval of the Board, a rail carrier

providing transportation subject to the jurisdiction of the Board

under this part may enter into arrangements for the joint ownership

or joint use of spur, industrial, team, switching, or side tracks.

The Board does not have authority under this chapter over

construction, acquisition, operation, abandonment, or

discontinuance of spur, industrial, team, switching, or side

tracks.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 827.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10907 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10906, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1406, related to offering abandoned rail properties for sale for

public purposes, prior to the general amendment of this subtitle by

Pub. L. 104-88, Sec. 102(a). See section 10905 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 11702, 11901 of this

title.

-End-

-CITE-

49 USC Sec. 10907 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 109 - LICENSING

-HEAD-

Sec. 10907. Railroad development

-STATUTE-

(a) In this section, the term "financially responsible person"

means a person who -

(1) is capable of paying the constitutional minimum value of

the railroad line proposed to be acquired; and

(2) is able to assure that adequate transportation will be

provided over such line for a period of not less than 3 years.

Such term includes a governmental authority but does not include a

Class I or Class II rail carrier.

(b)(1) When the Board finds that -

(A)(i) the public convenience and necessity require or permit

the sale of a particular railroad line under this section; or

(ii) a railroad line is on a system diagram map as required

under section 10903 of this title, but the rail carrier owning

such line has not filed an application to abandon such line under

section 10903 of this title before an application to purchase

such line, or any required preliminary filing with respect to

such application, is filed under this section; and

(B) an application to purchase such line has been filed by a

financially responsible person,

the Board shall require the rail carrier owning the railroad line

to sell such line to such financially responsible person at a price

not less than the constitutional minimum value.

(2) For purposes of this subsection, the constitutional minimum

value of a particular railroad line shall be presumed to be not

less than the net liquidation value of such line or the going

concern value of such line, whichever is greater.

(c)(1) For purposes of this section, the Board may determine that

the public convenience and necessity require or permit the sale of

a railroad line if the Board determines, after a hearing on the

record, that -

(A) the rail carrier operating such line refuses within a

reasonable time to make the necessary efforts to provide adequate

service to shippers who transport traffic over such line;

(B) the transportation over such line is inadequate for the

majority of shippers who transport traffic over such line;

(C) the sale of such line will not have a significantly adverse

financial effect on the rail carrier operating such line;

(D) the sale of such line will not have an adverse effect on

the overall operational performance of the rail carrier operating

such line; and

(E) the sale of such line will be likely to result in improved

railroad transportation for shippers that transport traffic over

such line.

(2) In a proceeding under this subsection, the burden of proving

that the public convenience and necessity require or permit the

sale of a particular railroad line is on the person filing the

application to acquire such line. If the Board finds under this

subsection that the public convenience and necessity require or

permit the sale of a particular railroad line, the Board shall

concurrently notify the parties of such finding and publish such

finding in the Federal Register.

(d) In the case of any railroad line subject to sale under

subsection (a) of this section, the Board shall, upon the request

of the acquiring carrier, require the selling carrier to provide to

the acquiring carrier trackage rights to allow a reasonable

interchange with the selling carrier or to move power equipment or

empty rolling stock between noncontiguous feeder lines operated by

the acquiring carrier. The Board shall require the acquiring

carrier to provide the selling carrier reasonable compensation for

any such trackage rights.

(e) The Board shall require, to the maximum extent practicable,

the use of the employees who would normally have performed work in

connection with a railroad line subject to a sale under this

section.

(f) In the case of a railroad line which carried less than

3,000,000 gross ton miles of traffic per mile in the preceding

calendar year, whenever a purchasing carrier under this section

petitions the Board for joint rates applicable to traffic moving

over through routes in which the purchasing carrier may practicably

participate, the Board shall, within 30 days after the date such

petition is filed and pursuant to section 10705(a) of this title,

require the establishment of reasonable joint rates and divisions

over such route.

(g)(1) Any person operating a railroad line acquired under this

section may elect to be exempt from any of the provisions of this

part, except that such a person may not be exempt from the

provisions of chapter 107 of this title with respect to

transportation under a joint rate.

(2) The provisions of paragraph (1) of this subsection shall

apply to any line of railroad which was abandoned during the

18-month period immediately prior to October 1, 1980, and was

subsequently purchased by a financially responsible person.

(h) If a purchasing carrier under this section proposes to sell

or abandon all or any portion of a purchased railroad line, such

purchasing carrier shall offer the right of first refusal with

respect to such line or portion thereof to the carrier which sold

such line under this section. Such offer shall be made at a price

equal to the sum of the price paid by such purchasing carrier to

such selling carrier for such line or portion thereof and the fair

market value (less deterioration) of any improvements made, as

adjusted to reflect inflation.

(i) Any person operating a railroad line acquired under this

section may determine preconditions, such as payment of a subsidy,

which must be met by shippers in order to obtain service over such

lines, but such operator must notify the shippers on the line of

its intention to impose such preconditions.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 828.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10910 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

Prior sections 10907 to 10910 and 10921 to 10936 were omitted in

the general amendment of this subtitle by Pub. L. 104-88, Sec.

102(a).

Section 10907, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1407,

related to rail carriers entering into arrangements for joint use

or ownership of spur, industrial, team, switching, or side tracks,

and deprived Interstate Commerce Commission of authority over such

tracks when located in one State or over certain electric railways.

See sections 10102, 10501, and 10906 of this title.

Section 10908, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1407,

related to discontinuing or changing interstate train or ferry

transportation subject to State law.

Section 10909, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1408,

related to discontinuing or changing train or ferry transportation

in one State.

Section 10910, added Pub. L. 96-448, title IV, Sec. 401(a), Oct.

14, 1980, 94 Stat. 1939; amended Pub. L. 97-468, title V, Sec.

506(a), Jan. 14, 1983, 96 Stat. 2553; Pub. L. 103-272, Sec.

4(j)(27), July 5, 1994, 108 Stat. 1369, related to railroad

development. See section 10907 of this title.

Section 10921, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1409,

related to requirement for certificate, permit, or license. See

section 13901 of this title.

Section 10922, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1409; Pub.

L. 96-296, Secs. 5(a), 6, 34(a), July 1, 1980, 94 Stat. 794, 796,

825; Pub. L. 96-454, Sec. 10(a), Oct. 15, 1980, 94 Stat. 2021; Pub.

L. 97-261, Secs. 6(a)-(c), (g), 7, 8, Sept. 20, 1982, 96 Stat.

1103, 1107, 1108; Pub. L. 98-554, title II, Secs. 225(a), (b),

226(b), Oct. 30, 1984, 98 Stat. 2847, 2848, 2850; Pub. L. 100-17,

title III, Secs. 339, 340(a), Apr. 2, 1987, 101 Stat. 243, 245;

Pub. L. 100-690, title IX, Sec. 9111(g), Nov. 18, 1988, 102 Stat.

4533; Pub. L. 102-240, title III, Sec. 3003(b), Dec. 18, 1991, 105

Stat. 2088; Pub. L. 103-272, Sec. 5(m)(25), July 5, 1994, 108 Stat.

1378; Pub. L. 103-311, title II, Sec. 207, Aug. 26, 1994, 108 Stat.

1686; Pub. L. 103-429, Sec. 7(a)(4)(D), Oct. 31, 1994, 108 Stat.

4389, related to certificates of motor and water common carriers.

See section 13902 of this title.

Section 10923, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1410; Pub.

L. 96-258, Sec. 1(9), June 3, 1980, 94 Stat. 426; Pub. L. 96-296,

Secs. 10(a)(2), (3), 34(b), July 1, 1980, 94 Stat. 799, 800, 825;

Pub. L. 97-261, Sec. 13(a), Sept. 20, 1982, 96 Stat. 1114; Pub. L.

99-521, Sec. 8(a)(1), (2), Oct. 22, 1986, 100 Stat. 2996; Pub. L.

103-311, title II, Sec. 208, Aug. 26, 1994, 108 Stat. 1687, related

to permits of motor and water contract carriers and household goods

freight forwarders. See section 13903 of this title.

Section 10924, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1412; Pub.

L. 96-296, Sec. 17(a), July 1, 1980, 94 Stat. 810; Pub. L. 97-261,

Sec. 14(a)-(c), Sept. 20, 1982, 96 Stat. 1114; Pub. L. 103-272,

Sec. 4(j)(28), July 5, 1994, 108 Stat. 1370, related to licenses of

motor carrier brokers. See section 13904 of this title.

Section 10925, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1412; Pub.

L. 96-296, Secs. 10(e), 17(b), July 1, 1980, 94 Stat. 801, 811;

Pub. L. 97-261, Secs. 13(b), 22, Sept. 20, 1982, 96 Stat. 1114,

1123; Pub. L. 97-449, Sec. 5(g)(6), Jan. 12, 1983, 96 Stat. 2443;

Pub. L. 99-521, Sec. 8(b), Oct. 22, 1986, 100 Stat. 2996; Pub. L.

103-311, title II, Sec. 209, Aug. 26, 1994, 108 Stat. 1688, related

to effective periods of certificates, permits, and licenses. See

section 13905 of this title.

Section 10926, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1413; Pub.

L. 99-521, Sec. 8(c), Oct. 22, 1986, 100 Stat. 2996, related to

transfers of certificates and permits.

Section 10927, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1413; Pub.

L. 96-296, Sec. 29, July 1, 1980, 94 Stat. 820; Pub. L. 97-261,

Sec. 18(h), Sept. 20, 1982, 96 Stat. 1121; Pub. L. 98-554, title

II, Sec. 226(c)(2), (3), Oct. 30, 1984, 98 Stat. 2851; Pub. L.

99-521, Sec. 8(d), Oct. 22, 1986, 100 Stat. 2996; Pub. L. 100-690,

title IX, Sec. 9111(h), Nov. 18, 1988, 102 Stat. 4534; Pub. L.

103-272, Sec. 5(m)(26), July 5, 1994, 108 Stat. 1378, related to

security of motor carriers, brokers, and freight forwarders. See

section 13906 of this title.

Section 10928, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1414; Pub.

L. 96-296, Sec. 23, July 1, 1980, 94 Stat. 814; Pub. L. 97-261,

Sec. 15, Sept. 20, 1982, 96 Stat. 1114, related to temporary

authority for motor and water carriers.

Section 10929, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1415,

related to temporary authority for previously exempt water

transportation.

Section 10930, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1415; Pub.

L. 96-296, Sec. 10(b), July 1, 1980, 94 Stat. 800; Pub. L. 99-521,

Sec. 8(e), Oct. 22, 1986, 100 Stat. 2996, related to limitations on

certificates and permits.

Section 10931, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1416,

related to motor common carriers providing transportation entirely

in one State.

Section 10932, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1417,

related to motor carrier savings provisions.

Section 10933, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1418; Pub.

L. 99-521, Sec. 8(f)(1), (2), Oct. 22, 1986, 100 Stat. 2996, 2997,

related to authorizing abandonment of household goods freight

forwarder service.

Section 10934, added Pub. L. 96-454, Sec. 5(a)(1), Oct. 15, 1980,

94 Stat. 2013; amended Pub. L. 98-554, title II, Sec. 227(a)(2),

Oct. 30, 1984, 98 Stat. 2852, related to household goods agents.

See section 13907 of this title.

Section 10935, added Pub. L. 97-261, Sec. 16(a), Sept. 20, 1982,

96 Stat. 1115; amended Pub. L. 103-272, Sec. 5(m)(27), July 5,

1994, 108 Stat. 1378, related to discontinuing bus transportation

in one State.

Section 10936, added Pub. L. 103-311, title II, Sec. 211(a), Aug.

26, 1994, 108 Stat. 1689, related to limitation on State regulation

of intrastate passengers by bus.

-End-